South Dakota P&C Producer Licensing Requirements

License Application Requirements

To obtain a South Dakota Property & Casualty producer license, you must:

Minimum Qualifications

Application Process

1. Complete Application

   • Apply through NIPR (nipr.com) or Sircon
   • Provide personal information
   • Disclose criminal history, regulatory actions
   • Pay application fee

2. Background Check

   • Fingerprint-based criminal background check
   • FBI and state criminal history review
   • Disclosure of any insurance-related disciplinary actions
   • Must demonstrate trustworthiness

3. Schedule Examination

   • Register with Pearson VUE
   • Pay $95 exam fee
   • Schedule at testing center or online proctored
   • No waiting period or time limit

4. Pass Examination

   • 145 questions (130 scored)
   • 70% passing score required
   • 2.5 hours (150 minutes)
   • Pass both general and state-specific sections

5. Receive License

   • License issued upon passing exam and completing background check
   • Valid for 2 years
   • Expires on birth month

Pre-License Education

No Required Pre-License Courses

South Dakota Distinction:

• South Dakota does NOT require pre-licensing education courses
• Candidates can take exam without completing coursework
• This is unusual - most states require 20-40 hours

Why Self-Study Is Not Enough

Despite no requirement, self-study alone is risky:

Success Rates:

• Candidates with prep course: 70-80% first-time pass rate
• Self-study candidates: 40-50% first-time pass rate

Recommended Preparation

Option 1: Self-Study (40-60 hours)

• Use this guide for South Dakota law
• Study national P&C textbook
• Take multiple practice exams
• Review insurance terminology

Option 2: Commercial Course ($200-400)

• Structured curriculum covering all exam topics
• Video instruction and written materials
• Practice questions and exams
• Typically 30-40 hours of content

Exam Tip: Even though SD doesn't require pre-license education, invest 40-60 hours in structured study. The 70% passing standard requires solid understanding of insurance principles.

Examination Details

Exam Format

Content Breakdown

General Knowledge Section (National Content):

• Property insurance principles and coverages
• Casualty insurance principles and coverages
• Commercial property and liability
• Insurance terminology and concepts
• Policy provisions and endorsements
• Risk management principles
• Claims handling procedures

State-Specific Section (South Dakota Law):

• SDCL Title 58 insurance law
• South Dakota licensing requirements
• State-mandated coverages (auto, UM/UIM)
• South Dakota insurance regulations
• Producer responsibilities and ethics
• Prohibited practices
• Consumer protection laws

Exam Administration

Pearson VUE Testing:

• Schedule online at pearsonvue.com or call 1-800-274-5993
• Choose testing center or online proctored option
• Exam fee: $95 per attempt
• Results provided immediately after exam
• Score report printed at testing center

Testing Centers in South Dakota:

• Sioux Falls
• Rapid City
• Aberdeen
• Pierre
• Additional locations as available

Online Proctored Testing:

• Take exam from home or office
• Requires webcam and stable internet
• Live proctor monitors via video
• Same security requirements as testing center

License Duration and Renewal

Initial License Period

License Renewal Process

Before Expiration:

1. Complete continuing education requirements
2. Submit renewal application through NIPR or Sircon
3. Pay renewal fee
4. Background check (if required)
5. Certify compliance with all requirements

Late Renewal:

• Grace Period: None - license expires on last day of birth month
• Reinstatement: Must reapply and may need to retake exam if too late
• Continuing Sales: Cannot sell insurance with expired license

Exam Tip: Mark your calendar for license renewal. South Dakota licenses expire on the last day of your birth month every 2 years. Complete CE early to avoid last-minute stress.

Continuing Education Requirements

CE Hours Required

CE Course Requirements

General Requirements:

• Minimum of 8 credits in your license line (P&C)
• Courses must be approved by SD Division of Insurance
• No ethics hours specifically required (unlike many states)
• Self-study, classroom, and webinar formats accepted

Important Changes (Effective October 1, 2025):

• South Dakota removed the limit on CE credits from insurance company-sponsored courses
• Previously, only a limited number of company-sponsored credits were allowed
• Now producers can earn all CE from company training programs if desired

CE Course Restrictions

What Counts: ✓ Approved P&C insurance courses ✓ Technical insurance topics ✓ Legal and regulatory updates ✓ Product knowledge courses ✓ Sales and marketing training (if insurance-related) ✓ Company-sponsored training (unlimited as of 10/1/2025)

What Doesn't Count: ✗ General business courses ✗ Motivational seminars ✗ Office management training ✗ Courses in other license lines (must be P&C) ✗ Courses taken more than once in the same 2-year period

CE Compliance

Completing CE:

• CE hours must be completed before license expiration
• No carryover credits to next period
• Cannot repeat same course in 2-year period
• Provider reports completion to SD Division

Tracking CE:

• Division maintains CE records
• Producers can verify CE completion online
• Keep certificates for your records
• Audit compliance randomly

Non-Compliance Consequences:

• License not renewed
• Must complete missing CE hours
• May require reinstatement application
• Cannot sell insurance until compliant

Special Training Requirements

Long-Term Care Insurance

Before Selling LTC:

• Initial Training: 8 hours of approved LTC training
• Must complete before soliciting, negotiating, or selling LTC insurance

Ongoing Requirement (Effective 1/1/2025):

• Ongoing Training: 4 hours every 2-year period
• Must complete within renewal period
• Ends on last day of birth month

New Requirement: The 4-hour ongoing LTC training became effective January 1, 2025. Producers selling LTC must complete this training in each 2-year renewal period.

Annuity Best Interest Training

One-Time Requirement:

• Required: 4-hour Annuity Best Interest Standard Training
• Must complete before selling, soliciting, or negotiating annuities
• One-time requirement (does not need to be repeated)
• Covers annuity suitability and best interest standards

Topics Covered:

• Annuity products and features
• Suitability requirements
• Best interest standard of care
• Consumer protection principles
• Disclosure obligations

Flood Insurance Certification

NFIP Training Requirement:

• Required: 3-hour NFIP Flood Insurance Certification Training
• Property/Casualty and Personal Lines producers must complete
• One-time requirement before selling flood insurance
• National Flood Insurance Program (NFIP) course

Why Required:

• Flood insurance has unique features
• NFIP is federal program with specific rules
• Protects consumers from misrepresentation
• Ensures producers understand coverage limitations

Non-Resident Licensing

Reciprocity

South Dakota offers reciprocal licensing for non-residents:

Requirements:

• Licensed and in good standing in home state
• Home state must have reciprocity with South Dakota
• Apply through NIPR
• Pay non-resident license fee
• No exam required if home state has reciprocity

Non-Resident Process

1. Verify Reciprocity - Check if home state has reciprocal agreement
2. Apply Through NIPR - Submit non-resident application
3. Submit Fees - Pay non-resident license fee
4. Receive License - SD license issued without exam

Maintaining Non-Resident License:

• Maintain home state license in good standing
• Complete home state CE requirements
• No separate SD CE required for non-residents
• Renew SD license every 2 years

License Types and Lines of Authority

Lines of Authority

When licensed for Property & Casualty, you can sell:

Property Lines:

• Homeowners insurance
• Dwelling fire policies
• Commercial property insurance
• Inland marine coverage
• Boiler and machinery
• Crime and fidelity bonds

Casualty Lines:

• Auto insurance (personal and commercial)
• General liability
• Professional liability (E&O)
• Workers' compensation
• Umbrella and excess liability
• Commercial multi-peril

Additional Lines

Separate License Required:

• Life insurance
• Health insurance
• Variable life and annuities (requires FINRA licenses)
• Title insurance (separate license)

Endorsements/Certifications:

• Surplus lines broker (additional license)
• Public adjuster (separate license)
• Bail bondsman (separate license)

Exam Tip: A P&C license allows you to sell all property and casualty lines but NOT life or health insurance. Those require separate licenses.

Summary: SD Licensing Requirements

To obtain SD P&C license: ✓ Be 18+ years old ✓ Pass background check ✓ Pass 145-question exam with 70% score ✓ No pre-license education required (but recommended) ✓ Pay application and exam fees

To maintain SD P&C license: ✓ Renew every 2 years by birth month ✓ Complete 10 hours CE (P&C only) or 20 hours (combined) ✓ Complete special training for LTC, annuities, and flood insurance ✓ Stay in good standing with Division ✓ Maintain errors & omissions insurance (if required by employer)